Evolution Mining share price craters in brutal market sell-off

The Evolution Mining Ltd (ASX: EVN) share price is down 5.13% today. The broader market was bleeding red, too, with the S&P/ASX 200 Index (ASX: XJO) down 2.58% at market close.

Every ASX sector index is down today amid the sell-off of US stocks that occurred overnight.

American and Australian equities slipped on a likely interest rate hike that will occur at the next Federal Reserve meeting scheduled for next week.

Therefore, it shouldn’t be surprising that Evolution Mining’s share price and other ASX materials shares struggled on Wednesday.

Alumina Limited (ASX: AWC) finished down 2.02%, while Liontown Resources Limited (ASX: LTR) slipped more, losing 3.94%.

Overall, the S&P/ASX 200 Materials Index (ASX: XMJ) lost 2.32%, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) fell 3.79%.

While the broader movements of the share market are already in hand, let’s recap some recent events for the company that led to the sell-off.

What’s going on with Evolution Mining shares?

To start with some good news, the spot price for gold was up 0.09% today to US$1,703 per troy ounce, according to Markets Insider.

However, the Fool also noted that the precious metal is suffering from rising interest rates. That’s because investing in gold does not confer the owner potential dividends.

At the beginning of the month, Evolution Mining appointed a new CEO, Lawrie Conway, to take the company’s reins.

My Fool colleague Aaron notes that Conway will help turn the company’s fortunes around, focusing on unlocking value from its Cowal and Upper Campbell underground mines.

A fully-franked dividend of 3 cents per share was announced in August with a payment date of 30 September.

Evolution Mining share price snapshot

Evolution Mining’s share price is down 45.3% year to date. On a relative basis, the ASX 200 is doing much better, as it’s down only 8.3% for the same period.

Shares in the gold miner close Wednesday’s trade at $2.22.

At today’s share price, Evolution presides a market capitalisation of $4.29 billion.

The post Evolution Mining share price craters in brutal market sell-off appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• The Evolution Mining share price has dumped 20% in a month. What’s next?
• Do ASX 200 gold shares pay regular dividends?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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